Premarket plan: Following the major trend -4H timeframe-, and after a big drop in the entire market due to fear on new COVID-19 variant, $AAPL did a gap of almost $2.00. I don't think $AAPL is going to fill this gap today. If the price open below the $159.50 level, I can see a little rally to this same level at the market open, and then a breakdown below $159.00. If the price open above the same level of $159.50, I can see a pullback to this same level, and then a rally to fill the gap. On the bear side I'd wait this rally to the $159.50 level, that's where I'd take my first entry with a put option, with a stop-loss at the $159.65 breakout, and a take profit at the $159.00 level. For the bull side, if at the market open I see a pullback on the price to the $159.50 key level, that's where I'd take my entry with a call option, with a stop-loss at the $159.35 level breakdown, and a take profit at the $160.00 level. On both sides I have a 3.3:1 risk:reward ratio. If the market moves on my direction I'd take my second entry at the daily open price breakdown/breakout.
Second trade plan: If my first trade doesn't workout and I get out with my stop-loss. I'd take a second entry at the next level of $0.50, placing my stop-loss $0.15 cents below the level of my entry.
Stop-loss: $159.35 (Non-taken)
Entry level: $159.50
Take profit level: $160.00 (Non-taken)
Second entry: $160.00 breakout.
Trail-stop: $159.80
Plan respected? No.
What did I do different from my premarket plan? I didn't took my take-profit exit where I was supposed to.
If I did not followed my plan, what could've or should've I done differently on this trade? I should've taken my take-profit, but I got greedy and wanted more. Of course, if I waited a few seconds longer, I could've been profitable on this trade. But I increased my risk where I was not supposed to.
Comments: I got greedy, and that's my mistake from today. If I'd taken my profits where I was supposed to take it, this trade could've been a very good trade. I didn't respect my plan.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2021-11-26 10:30:18 | AAPL | buy | $5.790 | long |
2021-11-26 10:31:03 | AAPL | buy | $6.180 | long |
2021-11-26 10:31:08 | AAPL | sell | $5.850 | 0 |
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